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“The digital channel provides advertisers with a unique benefit that is difficult to replicate using other media formats – the ability to target a specific individual, with a specific message, at a specific time.

In order for the industry to maintain that advantage it is crucial that brands manage the fine balance of producing engaging relevant ads without intruding on users’ privacy.”
– Paul Davies, Senior Leisure and Technology Analyst

Introduction

“The sense of advertising is to use the idea to generate trial to find new users to discover the use of the brand. The brand idea should be consistent over time and creativity is there to keep the idea relevant and appealing” (Van Dyck, 2014). Digital now accounts for around two fifths of total advertising revenue, leading it to be the most valuable media channel; ahead of TV advertising. Digital advertisement’s growth is a result of the rise of online video consumption, the increased adoption of auto-play video advertising on social media platforms as well as the new mobile-friendly trend that is growing day by day in our culture. A quick statistic shows that the rise of digital ad revenues in the first half of 2015 accounted for almost 80%, with Mintel forecasting that by 2020 the total revenues will surpass the £14.1 billion (up from £8.3 billion in 2015) (Davies P, 2016).


How digital advertisement works

In the ‘50s US sociologists Paul Laxarsfeld and Elihu Katz developed a communication model for classic advertising called ‘2-step-flow’, which is based on the idea that ‘when forming an opinion, people are influenced by opinion-leaders, who they have been influenced by mass media’ (Laxarsfeld and Elihu quoted in Van Dyck, 2014, p.19-20). This model seems to be more relevant than ever. Many researchers have since published their work based on this model and all seem to confirm its validity. 2-step flow.pngFor example, Keller E. and Fay B. found that face-to-face word of mouth is up to four times more influential than online word of mouth (2009). In today’s digital world, marketing budgets are leaning towards online and social media, so the key to success is to create a marketing mix for positive word of mouth and advertising (Van Dyck,2014, p.31). ShareThis it is an online Social Bookmarking and Sharing tool company that helps publishers, advertisers or any data-driven business to build a social data platform to process actual first-party data in actual real time. Recently they published a study about the ‘word of mouth’ phenomenon which supports Dyck’s statements about the marketing mix. Their study called Return on a share, Quantifying the monetary value of social sharing explains that:
v ‘Recommendations have more impact in a consumer’s purchase decision than both brand and price- 57% of decisions are based on this’
v Online shares are almost as valuable as in-person recommendations- a consumer is 9.5% more likely to buy a product that has an excellent shared recommendation compared with 10.6% more likely via an excellent in-person one. Additionally, a negative recommendation can reduce the purchase intent by 11% when it is an online share and 11.2% when it is done face-to-face.
v If a consumer has had an excellent online recommendation (via sharing) we can determine the value of the share by measuring how much more he or she could pay for that product (ShareThis cited in Minnium, 2014).
Jasper Snyder and Manuel Garcia in their Journal How Advertising Works include Millward’s Brown experiment to explain the cognitive and emotional synergies of cross-platform advertising. They explain that advertising on multiple platforms is more effective than advertising on a single platform only, while the combination of television and digital media are the most effective in driving return on investment (ROI). Finally, campaigns with a unified message and theme across different platforms are more effective than the nonunified ones. (2016, p.7)


History

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Evidence of advertising can be found in ancient Egyptian, Greek and Roman times. Between 1890 and 1910 advertising was a printed-press form. Later it took a more visual and audio form with radio and cinema (1920-1940). After the World War II TV became the mass medium and advertising was more personalized (Dyck,2014). There were still limitations considering that brands had to translate their message into a 30-second TV commercial and that also meant one-way broadcast. Today, ads are everywhere. We are woken up by a ping on our mobile phone; it is there when we switch on our radio or TV, when we are on social media and when we read a newspaper. Digital revolution has brought new challenges for advertising. People scroll their Facebook page while they are watching TV, they use more media at once and different platforms. Cross-media storytelling has become a new trend in the media industry and now bands can unfold their messages by using different media together and create a complete experience for the consumers. That does not mean TV, radio and newspaper ads cannot communicate with them any longer though. As it has been mentioned above, today a successful advertising campaign involves multiple media platforms to create better awareness. Advertisers now use traditional media as an “introduction” to the product or service that aims to lead the audience and potential customers to the digital media platform where they can complete an online purchase, subscribe or follow the company on social media and become loyal customers. According to Kumar V. and Shaphali Gupta in their journal published by the American Academy of Advertising, the future of advertising will be beyond the relationship and engagement focus. Having said that, they believe this area of research is worth further development and the creation of an integrated framework that will organise the macro and contextual factors that influence the effectiveness and performance of advertising (2016, p.303).


How advertising influences management practice

Changes in society mean changes in businesses too. Now that everything moves faster, media have become more complex and consumers ask for more, businesses look for new organizational structure. According to Van Dyck, brand manager should still lead the brand- know the target audience, manage the innovation strategy and plan the advertising campaigns. However, businesses today need communication experts who fully understand the strength of their medium and carry out the idea effectively (2014). In 2012 the US invested about $497 billion in advertising while the biggest investment in advertising was made in Switzerland ($744 per person). After seven years of studying and working with 80 companies, Nielsen managed to measure the correlation between online advertising and offline consumer purchases. Nielsen found out that brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising (Minnium, 2014). This big turn to digital has worked for the best for most companies. Below are some of the most popular marketing models that marketers and advertisers use to plan their campaigns.

AIDA(R) Model

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The AIDA model is the description of the customer’s journey that goes through during the buying process for a product or service. It is like a funnel where buyers move through each stage, supporting them in making the purchase (Hanlon,2013).
  • Awareness: create brand awareness with the product or service.
  • Interest: generate interest in the benefits of the product or service, and sufficient interest to encourage the buyer to research further.
  • Desire: for the product or service through an ‘emotional connection’, showing the brand’s personality. It moves the consumer from ‘liking it’ to ‘wanting it’.
  • Action: the buyer takes the next step and interacts with the company. That could mean: downloading a brochure, making a phone call, joining the company’s newsletter etc.
Some marketers add an extra “R” to the model which represents Retention. Nowadays it is to up sell, cross-sell, referrals, Advocacy and many more.

SOSTAC Model

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This model was devised by Paul Moth – a best-selling marketing author, international speaker and consultant- in the 1990s. SOSTAC focuses on the six most important elements of any business (Alvi,2017).
  • Situation analysis: what is the current state of a business?
  • Objectives: helps list an overview of goals for the business
  • Strategy: helps provide a ‘big picture’ plan to achieve the goals
  • Tactics: breaks down the “big picture” strategy to smaller more detailed tasks
  • Action: helps assign responsibility and deadlines for the small tasks
  • Control: the ways to track the progress of the plan.

RACE Model

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The race model covers the key online marketing activities that need to be managed as part of digital marketing. It was originally developed by Xan Blanc and popularized by Steve Jackson on his book Cult of Analytics. It consists of four steps/ online marketing activities which are designed to help brands engage their customers throughout the customer lifecycle.
  • Reach: the process of building awareness of a brand, its products or services both online and offline in order to build traffic through visits on the main website and social media pages. It also includes maximizing reach over time to create multiple interactions by paid, owned and earned media.
  • (Inter)Act: persuading the visitors to take the next “Action”/ step on their journey when they reach the brand’s website or social media pages. This action usually consists of actions such as “Viewed product”, “Added to Basket”, “Registered as member” or “Signed up for a e-newsletter”. It is also about encouraging participation by, for example, sharing content on social media or customer reviews. Overall it is about engaging the audience through relevant, compelling content and clear navigation pathways in order to make a purchase.
  • Convert: the step where the audience turn to customers through online Ecommerce transactions, or offline channels.
  • Engage: the creation of long-term relationships with first-time buyers in order to build customers’ loyalty by using communication on your site, social presence, email and direct interactions to boost customers’ lifetime value. Engagement can be measured by repeat action such as sharing content and repeat sales through social media. Finally, it is important to measure the percentages of active customers (or email subscribers), customer satisfaction (through surveys and online feedback) and recommendation using online data analysis.

OASIS Model

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OASIS is a guide to campaign planning, used by all government and public service communications professionals. According to the information provided in the U.K government’s ‘A guide to campaign planning’, the OASIS method is the most effective way to put out news press/digital at no cost, to large scale multimillion pound behavior change campaigns. OASIS provides a series of steps that help to make the process of planning simpler and easier to remember (GCP, 2015).
  • Objectives: begin with the policy aim and develop communications objectives that will deliver this. Include the way that communications will help achieve the policy aim as well as all the activities and channels that will be used for that reason. “Objectives should be achievable, measurable (expressed numerically where possible), focused on outcomes not outputs and related to changing attitudes and/or behavior.” (GCP,2015).
  • Audience Insight: who is your target audience? Do you need to change or influence their attitudes and behaviors to help you achieve your objective? To understand your audience, use your own research, any relevant government data or publicly available information. If this is a large-scale project, look at academic theories of behavior.
  • Strategy/Idea: set out your approach including any theories that you may apply by using audience insights. Parts that need to be covered at this step are the proposition/messaging; channels; and parterres/ influencers. Map, also, the audience journey and design communications relevant to different stages of the journey. Try to test your approach where possible to check if it is effective.
  • Implementation: set out how you will deliver your communications and what tactics you will use. Create a clear plan; set out timescales and bring influencers and partners on board to find low cost approaches where possible, especially PR and partnerships.
  • Scoring/Evaluation: evaluate your outcomes and outputs once it is complete. Use formal and informal approaches to measure and evaluate, use online analytics tools such as Google Alerts, Google Analytics and Hootsuite. This will allow you to make minor adjustments where necessary (GCP,2015).

None of these models are better or worse than the others. Each business should use the one(s) that work most effectively for them. It is crucial that every marketing campaign includes offline media and channels as well. In his article, Chaffey outlines that the most important aspects of integration are first to use the traditional media to raise awareness of the value of your online presence and then drive the visitors to your website and social media (2016).


Trending Facts


It is hard to come to an accurate and consistent conclusion when we talk about the digital world. Everything is changing so fast; a marketing strategy that worked successfully for a brand a few years ago, may be entirely ineffective today. However, below are some points that are unlikely to change, or are proof that technology can bring big and quick changes.
In 2012, big print brands such as Newsweek, Frankfurter Rundschau and the German edition of the Financial Times disappeared. Over the last five years, 268 newspaper titles are said to have vanished in the United States alone (Van Dyck,2014, p.11)
Customer brand disloyalty continues to increase: 66% of customers worldwide said they had changed brands because of a bad customer experience (Van Dyck,2014, p.12). A few months later however, McKinsey analyzed 24 customer touch-points for more than 9,000 new car buyers in order to better understand the reasons of engagement that drive customers’ premium perceptions and purchase decisions. The results proved that digital factors are key to driving premium perception, and that digital channels create the path to purchase. ‘With traditional media, brands were constrained in their ability to influence prospects across the entire journey and to do so in a granular, discrete manner. Not so with digital media’ (Minnium, 2014).
Last year Mary Meeker, an Internet Trends reporter, published one of the “most closely watched reports in the tech industry” (Johnson L.,2016). According to Meeker, mobile ad revenue is exploding with more than 66% growth since 2015. However, desktop ads’ revenue was up just 5% and it is believed that “the year of mobile” is true more than ever before. However, while consumers spend 25% of their time on mobile and 22% on their desktops, advertisers currently allocate 11% more budget to desktop advertising (Meeker cited in Johnson, 2016).
Together, Facebook and Google control 76% of internet advertising growth, and brands are increasingly embracing bots and chat-based marketing. Data reported by Lauren (2016) (right) found that there was a quick rise in popularity of WhatsApp, Facebook Messenger and WeChat in the past six years comparing to site-based Instagram, Twitter and LinkedIn
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A worldwide conference series for anyone who is interested in marketing, management and technology is taking place all over the world with many events every year and globally recognized professional speakers including Coca Cola director, Beckon’s CEO and Apple’s CMO (MarTech,2017)
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Case studies/ Examples


Nike: Find your greatness

‘Just do it’ was based on athletes. After so many years, Nike decided to approach everyday people (light buyers) and inspire them to ‘start moving’. They found the perfect timing: the 2012 Olympics in London. At the core of the campaign was a film that broke through social media and digital channels, supported by a global YouTube page promotion. It also promoted the hashtag ‘#findgreatness’ to create conversation on Twitter. The whole world was looking on as the sports brand chose to focus on the millions of ‘regular’ people, as a result Nike had the most talked-about campaign during the Games, leading to $506 million in revenue growth. Finally, Nike+ membership increased by 55 per cent and inspired people to move again (Effie Worldwide,2012).



Under Armour: Rule yourself

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Under Armour is another brand that took the opportunity of the summer Olympics and created a popular and well-known advertising campaign. Their 2016 campaign focused on the side of the athletic achievement that no one sees. For example, one of the ads is a one-and-a-half-minute video of Michael Phelps’ challenging preparation for the Olympic Games including ice baths and cupping therapy (video below). Under Armour as a brand values the hard work and everyday dedication that leads to success. It emphasises self-improvement and self-reliance and this ad campaign perfectly embodies these deep-seeded values. At the end of every short video is this powerful message: ‘It is what you do in the dark that puts you in the light’ (Kolowich, 2016).




National Trust: 50 things to do before you’re 11 ¾


In 2012 the National Trust launched a nationwide campaign called the ’50 things to do before you’re 11 ¾’. This campaign encourages children to get off their sofas and go outdoors. The charity provided evidence of a long-term and dramatic decline in children’s relationship with the outdoors; fewer than one in ten children regularly play in wild places compared to half a generation ago. The campaign aims to create awareness of this reality and enable children to reconnect with nature before the age of 12. The campaign provides a free checklist of outdoor adventures with over 350 Trust locations and 7,000+ events for families to participate in. Every time they complete an adventure the online users receive a virtual reward and they can unlock secret challenges. This innovative campaign has managed to engage over 50,000 children all over the UK and most importantly the charity managed to reach 84% satisfaction since 2013 (Simpson,2015).

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Conclusion- NEW? TREND? MANAGEMENT?


Each of us has an opinion about advertising. Some of us embrace it as part of our popular culture, while some others believe it is destroying the world. Advertising is omnipresent in our lives. Digital advertising has been proving its worth not just to marketers and companies but to everyone. Every day it is creating new desire and demand, increasing consumer engagement and loyalty and increasing online and offline sales. It goes without saying, therefore, that digital advertising is a trend. Although advertising is not new, its nature has been transformed and brought more dimensions over the years. Nowadays when we talk about digital advertising we talk about a whole new marketing campaign and strategic planning. Because of all those reasons digital advertising is new. Last but not least, advertising is the way in which companies communicate with their audience and it is one of the biggest parts of every marketing strategy, which means that digital advertising is management.








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